DSCR Loan Guides

What Is a DSCR Loan? How Rental Property Loans Qualify on Rent

A DSCR loan is a rental property mortgage that qualifies on the property's rent instead of your personal income. How it works, who it fits, what it costs, and where it falls short.

How to Calculate DSCR for a Rental Property (With Worked Examples)

The DSCR formula lenders apply to rental property loans, with three worked examples: a purchase, an interest-only loan, and a property with HOA dues. Plus the commercial NOI version and why they differ.

What Is a Good DSCR? How Lenders Read Each Ratio

A DSCR of 1.25 or higher is good. Here is what lenders do at every band from under 0.75 to over 2.0, how each affects your rate and LTV, and why a ratio that qualifies is not the same as a ratio that makes money.

DSCR Loan Requirements: What Lenders Check and What They Skip

The complete list of DSCR loan requirements: minimum ratio, credit score, down payment, reserves, property types, LLC rules, appraisal and rent documentation, and the prepayment penalty terms to watch.

DSCR Loan Down Payment: How Much You Need and How the Ratio Sets It

DSCR loans need 20 to 25% down, but the real minimum is whatever makes the rent cover the payment. How to calculate the down payment your ratio requires, what pushes it higher, and where the cash can come from.

DSCR Loan vs Conventional Investment Property Loan: Which Costs Less?

A side-by-side comparison of DSCR loans and conventional investment property mortgages: qualifying, rates, down payment, property limits, LLC ownership, prepayment penalties, and the situations where each one is the better choice.

DSCR Below 1.0: Can You Still Get a Loan, and Should You?

A DSCR under 1.0 means rent does not cover the payment. Which lenders still lend, what it costs in rate and down payment, how to fix the ratio, and when walking away is the right answer.